The Government session chaired by Prime Minister Alikhan Smailov considered measures to implement the instructions of the Head of State given during the opening of the first session of the 8th Parliament. Acting Minister of Energy Bolat Akchulakov reported on the country's power unit development plans.

According to the acting minister, domestic consumption of natural gas has increased significantly, namely by more than 2 billion m3 compared to 2020, given the growth of the economy.

The Ministry, together with KazakhGas and KazMunayGas, is taking a number of measures to supply the country's economy with gas:

First, legislative changes to stimulate gas production have been adopted.

Second, work is underway to implement new gas processing plants, including at the Kashagan and Karachaganak fields.

As a result, Akchulakov said, marketable gas production is expected to increase starting this year, with a significant increase in 2025.

Third, agreements have been reached with Gazprom on gas imports as part of the signed Road Map.

At the same time, energy saving is the top agenda around the world; the onset of cold weather has exposed gas problems not only in Kazakhstan, but also in neighbouring Uzbekistan and Turkmenistan.  

"Gas prices for households need to be restrained taking into account the socio-economic situation of such consumers. However, low gas prices also continue to be enjoyed by consumers with high incomes," the Acting Minister of Energy said. 

In this connection, in accordance with the instruction of the Head of State, by the end of the first half of this year:

• Together with the Ministries of Industry and Infrastructure Development, and Economy, an energy efficiency and rational consumption of marketable gas plan will be developed;
• A mechanism for differentiated gas tariffs will also be prepared together with the Ministry of Economy to encourage careful gas consumption for household consumers other than those receiving targeted social assistance.

On 1 July this year, a transition to a new electricity market model is planned, based on the mechanism of a single buyer of electricity and a balancing electricity market.

"The new market model will enable the implementation of necessary generation commissioning projects to cover medium-term power demand," the Acting Minister said.

Today, projects are underway to modernise existing power plants, which will put more than 1,700 MW into operation by 2027.

Shunting capacity of over 1,200 MW is under construction in Kyzylorda city and Turkestanregion.

Projects for the construction of new CHP plants in Kokshetau and Semey are also under consideration.

Projects are underway to construct Units 3-4 at Ekibastuz GRES-2, as well as to modernise the power generation facilities at the Almaty Power Complex.

In addition, work is underway to modernise the National Electricity Grid, including the reinforcement of the Western and Southern zones and the connection of the Western zone to the Unified Electricity System.

As is well known, there is a draft Law on Heat and Power in the Majilis of the Parliament of the Republic of Kazakhstan, which provides for

• a clear delineation of the powers of the state authorities to regulate and control heat supply;
• to regulate the rights and obligations of heat consumers, heat producing and heat generating organisations;
• introduction of a new tool - the master plan for the development of the thermal energy sector;
• measures to stimulate energy efficiency improvements.

As Akchulakov stressed, the hydrocarbons industry is facing the challenge of developing a high value-added petrochemical industry.

At the end of last year, one of the world's largest petrochemical plants for the production of polypropylene with an annual capacity of 500,000 tonnes was commissioned.

In addition, two large polyethylene production projects with a capacity of 1.2 million tonnes and butadiene production with a capacity of 319,000 tonnes are currently underway, for a total investment of $8.6 billion.

"In international practice, small and medium-sized businesses for the production of consumer goods are actively developing near petrochemical facilities using basic petrochemical products. With each successive downstream process, petrochemicals have a greater multiplier effect. After the fourth redistribution, the value of the end product increases by about 10 times," Akchulakov added. 

#Energy #Heat supply